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Below are Views On January series is an historical one as the benchmark index By Mrs. Sneha Seth (Derivatives Analyst, Angel Broking)

January series is an historical one as the benchmark index clocking fresh record highs tad above 14750. However, in merely last four trading sessions all the gains during the series has been wiped-off. Today, we had a muted start but follow-up selling during the remaining part of the day led closing with a cut of almost a percent.

Throughout the series, we saw profit booking along with few shorts in Nifty; whereas, banking index corrected due to meaningful shorts. Stronger hands too preferred  exiting longs and they also added good amount of shorts in January series. Hence, their index futures long short ratio plunged from 76% to 64%. In recent fall, good amount of writing was seen in ATM and slightly OTM call options which has now resulted the PCR-OI falling below 1 after quite some time. In addition, we also witnessed the volatility index surging to 24.40, further rise beyond 25.50-26 may be a sign of concern as we haven’t seen INDIAVIX closing at such higher levels in last five series. The benchmark index has concluded today’s session at a very crucial level; hence, follow-up move on the expiry day is very important to watch. At present, we would advise traders avoiding any aggressive bets on the monthly expiry ahead of the key event.

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